Jessica's marginal cost for producing a pitcher of lemonade is $0.25.Therefore,$0.25 can also be called her:
Last summer,real estate prices in your town soared.You started noticing more "For Sale" signs in your neighbors' yards.You conclude that:
A)people don't like to live in your neighborhood anymore.
B)when housing prices rose,they started to exceed some of your neighbors' reservation prices.
C)the demand curve for housing in your town has shifted to the left while supply remained constant.
D)the supply curve for housing in your town has shifted to the right while demand has remained constant.
Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5,and that Curly has now begun operating a hot dog cart.We can assume that:
A)Curly's reservation price is $5.00 or more.
B)Curly's reservation price is exactly $4.50.
C)Curly's reservation price is greater than $4.50 but no more than $5.
D)Curly's reservation price is exactly $5.
A seller's reservation price is generally equal to:
A)the buyer's reservation price.
B)the seller's opportunity cost.
C)the seller's marginal benefit.
D)the market price.